English summary/Financial information

In January 2019, Eiendomsspar repurchased 3,100,000 of its own shares. The share repurchase led to an increase in Victoria Eiendom’s ownership interest in Eiendomsspar from 48.2 % to 52.4 %. As a result, Eiendomsspar is consolidated into the Victoria Eiendom Group, as of 2019. As of 31.12.2021, the ownership interest has increased to 55.5 %. Operationally and financially, the companies are operated as previously. In the following text, the main focus is on Victoria Eiendom, excl. Eiendomsspar («Victoria Eiendom excl. Eiendomsspar»). Information about the subsidiary Eiendomsspar is presented in a separate section, while the financial information presents information about Victoria Eiendom consolidated with Eiendomsspar («the Victoria Eiendom Group»).

Victoria Eiendom is one of Norway’s leading real estate companies. The company was founded through a demerger from Eiendomsspar AS in 1993, and is today controlled by Christian Ringnes and related parties (45.7 % of outstanding shares). In addition, the company has more than 400 institutional and private shareholders as of 31.12.2021.

The company operates through the operation and development of its directly owned properties, as well as through its subsidiary Eiendomsspar.

(Numbers in brackets refers to figures for same period in 2020 if other is not specified).

2021 was a satisfactory year for Victoria Eiendom, despite the Covid-19 pandemic still having a negative impact on variable lease income from the subsidiary Eiendomsspar and the affiliated company Pandox. Low interest rates and high activity in the transaction market contributed to sales profit and growth in the value of Victoria Eiendom’s real estate portfolio. Value adjusted equity as of 31.12.2021 is calculated at NOK 943 per share, when valuing the Eiendomsspar shares at their net asset value, an increase of 14 % (including dividend) from the previous year.

The Board proposes an ordinary dividend for 2021 of NOK 9.00 per share (last year an ordinary dividend of NOK 8.50 per share). In addition the company distributed a dividend of NOK 30.00 per share in December 2021.

VICTORIA EIENDOM EXCL. EIENDOMSSPAR Investments and disposals Victoria Eiendom has completed several transactions in 2021. The company acquired Professor Birkelandsvei 36 at Furuset in Oslo, three Plantasjen stores in Bryne, Halden and Stjørdal and Hausmanns gate 40 in Oslo. The total purchase price for the properties amounted to NOK 398 million. In addition Victoria Eiendom has purchased 1,041,258 of its own shares for a total of NOK 781 million. The company has sold the office property Drammensveien 88 B in Oslo and the combined retail and office property Midtstranda 49-51 at Hamar. The realized accounting gain from the disinvestments amounted to NOK 190 million.

Letting situation The operation of the real estate portfolio was satisfactory and has been close to normal through 2021. Most of the measures implemented to handle the Covid-19 pandemic was ended at year end.

The vacancy rate, as measured by rental value by year end 2021, is 1.3 %, compared with 3.4 % in 2020. The decrease is mainly explained by a gradual improvement of the tenant market and several new leases, during the fall of 2021. The average remaining lease period of Victoria Eiendom’s properties excl. Eiendomsspar is 9.7 years as of 31.12.2021, compared with 9.0 years as of 31.12.2020. The increase is mainly due to an extension of the contracts with Norsk Scania, for an additional seven years.

Summary of results Rental income for Victoria Eiendom excl. Eiendomsspar was NOK 189 million, compared with NOK 184 million in 2020. The operating profit was NOK 307 million, against NOK 517 million in 2020. The decrease in operating profit is explained by reduced profits from sales.

Financial position Victoria Eiendom excl. Eiendomsspar is in a strong financial position with a value adjusted equity-to assets ratio (including minority interests) of 81 %.

Victoria Eiendom’s liquidity reserve, including long-term secured credit facilities, amounts to NOK 740 million (NOK 781 million). In addition, the subsidiary Eiendomsspar has a solid liquidity reserve.

DAUGHTER COMPANY EIENDOMSSPAR Rental income in Eiendomsspar amounted to NOK 716 million in 2021, an increase of NOK 15 million from 2020. Profit before taxes was NOK 1,096 million, compared with NOK 1,426 million in 2020. The decrease is mainly due to reduced profits from the sale of real estate. The affiliated company Pandox improved its profits in 2021. The net asset value of Eiendomsspar as of 31.12.2021 is calculated at NOK 548 per share, which is an increase of 10 % (including dividend) from the previous year.

The Eiendomsspar share price increased from NOK 435 to NOK 455 in 2021 (+11 % taking into account the dividend distribution of NOK 26.50 per share). At the turn of the year, Eiendomsspar shares were valued at 83 % of their calculated net asset value, which is the same as previous year.

The investment in Eiendomsspar constitutes more than 80 % of Victoria Eiendom’s exposure to the real estate market and is therefore of material importance to the company.

VICTORIA EIENDOM GROUP (INCL. EIENDOMSSPAR) Summary of results Rental income for the Victoria Eiendom Group was NOK 905 million, compared to NOK 886 million in 2020. The operating profit was NOK 879 million, compared with NOK 2,126 million last year. The decrease in operating profit is explained by reduced profits from the sale of real estate in both Victoria Eiendom and Eiendomsspar.

The Victoria Eiendom Group’s total assets as of 31.12.2021 was NOK 25,878 million (NOK 25,022 million). Total debt amounted to NOK 11,634 million, of which NOK 9,878 million was interest bearing.

Shareholder and capital structure The Victoria Eiendom share price increased from NOK 640 at the start of 2021 to NOK 735 at year-end (+21 % taking into account the dividend distribution of NOK 38.50 per share). The company has a share capital of NOK 38.5 million, consisting of 12,309,821 shares with a par value of NOK 3,125. Victoria Eiendom owns 62,164 of these shares.

Events after the balance sheet date Victoria Eiendom has acquired an additional Plantasjen store. It is located in Namsos and had a purchase price of NOK 59 million. In addition the company has acquired 80,905 of the company’s own shares for a total of NOK 56.0 million. The company’s total holding of own shares is 143,069.

The subsidiary Eiendomsspar has acquired the property Kjelsåsveien 161 in Oslo for a purchase price of NOK 573 million. In addition, the company has acquired 600,775 of the company’s own shares for a total of NOK 249 million. The company’s total holding of own shares is 711,508. Eiendomsspar has taken part in an equity issue in Aurora Eiendom, a shopping center company, with its pro rata share of approximately 17 %, NOK 68 mill.

The subsidiary Eiendomsspar has sold its subsidiary, Parkveien 64 Næring AS, owning the store premises in the property Parkveien 64, in Oslo. The company was owned 70 % by Eiendomsspar, 8.1 % by the parent company Victoria Eiendom, 6.0 % from CEO Christian Ringnes and 15.9 % by former employees. The sale was made to a third party and at market conditions. Total profit from the sale is estimated at NOK 55 mill.

Market outlook The ongoing Covid-19 pandemic has had a major impact on the Norwegian economy and society for almost two years. Periods of positive development has been replaced by new periods with restrictions and lock downs. As a consequence of vaccination of a large share of the population in western countries and “kinder” mutations which cause less serious illness, we now see many countries opening up and ending most restrictions. Experiences from former periods of “opening up” has shown a rather swift return in economic activity. However, inflation, interest rate hikes, reduction in central banks quantitative easening as well as the war in Ukraine and supply chain disruptions are causes of concern. The population adopting to new travel-, work- and consumption patterns post covid, will be central topics influencing the world in the years to come. The volatility and insecurity related to development of Covid-19 and the war in Ukraine, leads to greater uncertainty than usual concerning the near team market outlook.

About 235,000 square metres have been added to the office market in the Oslo region in 2021, which is above

historical average. The office market absorption increased in 2021, both in relation to historical average and last year. This has been one factor contributing to low vacancy rate. In 2022 vacancy rates are expected to fall slightly as a consequence of increase in demand and increased economic activity. Looking towards 2023 outcome is more uncertain, as more supply is expected and the variance in economic activity is higher.

There has been little capacity growth in the hotel market in the Oslo region during 2021 and the same is expected going forward. The supply growth of 2019 and in part 2020 was higher than normal and must be absorbed before the market is back to pre covid levels. Covid hit the travel industry hard, however demand has been back rather swiftly as restrictions has been removed. The demand side has mainly been driven by national tourism and local and regional business traffic. International business traffic, conferences and group travel are segmentes expected to need more time before being back to pre covid demand. Hence, it is still expected that it will take several years before hotel demand returns to previous levels. Shopping preferences among Norwegian consumers have been changing for several years and e-commerce is taking up an ever-increasing share of the retail trade, however is still below 10 % of the total. Even though e-commerce growth is expected to continue, traditional shopping will still constitute most of the volume going forward. Good city centre locations and shopping centres are still expected to be attractive. It is expected that businesses within the service-, restaurant- and cultural/entertainment industry will constitute an increasing share of the tenant base in the coming years.

The housing market experienced high price growth in January and February 2022, however this is expected to level out throughout the year at a total growth in line with 2021. Moderate growth is also expected for the years thereafter, based on limited supply and increasing interest rates.

Victoria Eiendom has a strong financial position and is well positioned to handle both a prolonged crisis and to take advantage of investment opportunities that may arise.

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Income statement

(NOK million) Rental income from properties Other income Operating expenses on properties and projects Gross operating profit Profit from sales of properties Refurbishment costs Depreciation Payroll and other operating costs Operating profit Share of profit in associated company/joint ventures Financial income Financial cost Profit before taxes Taxes Profit for the year

Balance sheet as of 31 December

(NOK million)

Assets

Property and equipment Financial assets Total non-current assets Trade and other receivables Cash and cash equivalents Total current assets Total assets

Equity and liabilities

Equity Deferred taxes Non-current liabilities Current liabilities Total liabilities Total equity and liabilities

2021 2020 2019

905.0 885.6 1,002.0 7.9 2.5 9.4 (100.4) (97.5) (108.4) 812.5 790.6 903.0 465.6 1,743.9 156.5 (104.8) (128.0) (176.4) (163.0) (169.7) (165.8) (131.4) (110.7) (105.0) 878.9 2,126.1 612.3 167.5 (426.3) 882.4 375.2 48.1 69.8 (245.0) (300.0) (292.0) 1,176.6 1,447.9 1,272.5 (137.6) (81.9) (277.7) 1,039.0 1,366.0 994.8

2021 2020 2019

16,391.8 15,293.4 15,915.5 9,039.1 9,393.4 9,296.2 25,430.9 24,686.8 25,211.7 121.4 116.9 173.2 325.4 218.2 148.7 446.8 335.1 321.9 25,877.7 25,021.9 25,533.6

14,243.3 15,514.1 14,370.4 831.9 803.4 824.6 9,367.9 7,510.1 9,330.8 1,434.6 1,194.3 1,007.8 11,634.4 9,507.8 11,163.2 25,877.7 25,021.9 25,533.6